Parents are the big winners in a new, $55.8 billion state budget package that passed the Connecticut House late Monday night. It includes Gov. Ned Lamont’s universal preschool proposal, as well as a small tax credit for the working poor.

But Republicans blasted the spending plan for using “deception” to increase state spending – and warned that it could lead to future tax increases.

Child care is one of the biggest expenses parents face – and that’s if you can even find a slot.

But under the new state budget, as well as a sweeping early education bill passed over the weekend, families earning up to $100,000 a year will get free day care. For those making more, costs would be capped at 7% of their annual income.

“It’s a good budget. It makes key investments in education and not-for-profits,” Lamont told reporters on Monday. “I think it makes investments in our future, especially when it comes to the early childhood education.”

Lamont’s universal preschool program is the centerpiece of the nearly 700-page tax and spending package.

The budget includes more relief too.

Lower-income parents will get an extra $250 earned income tax credit starting next year. The relief will help up to 85,000 families making up to $66,000 per year.

Home-based day care centers will get a $500 credit. ASML in Wilton can now claim a tax break for research and development, and other businesses can receive $500 per employee for contributing to workers’ CHET college savings accounts.

“It redoubles our investment in children,” said state Rep. Maria Horn (D-Salisbury), co-chair of the Legislature’s tax-writing committee.

License fees for more than two dozen professions are being eliminated – including teachers, nurses, physician assistants and therapists.

The new state budget also caps the cost of generic prescription drugs and brand-name pharmaceuticals that have been off-patent for two years. Price increases would now be tied to inflation.

Judges will receive a 3.5% pay increase under the spending plan.

Although families will save money, the new budget also includes some tax increases.

The unitary tax on large corporations will increase by $200 million, and hospitals will pay $375 million more in provider taxes.

“The tax increase on hospitals and proposed cuts to healthcare providers contained in this budget will be devastating for hospitals, their workforce and their patients,” the Connecticut Hospital Association said in a statement. “It will leave hospitals facing a staggering cut of hundreds of millions of dollars, while the state uses federal dollars to balance its budget without any action to increase Medicaid reimbursement for care provided to patients in hospitals.”

But there's a catch.

Hospitals could get the money back. The federal government reimburses the state for provider taxes. Top Democrats said the move was meant to lock in higher rates.

“We did that actually to respond to Washington,” Connecticut House Speaker Matt Ritter (D-Hartford) said. “That’s the upper limit on the tax we can go on, and we’re trying to freeze it.”

But there is no guarantee the Trump administration will send that money back.

“It is going to put Connecticut on a very dangerous path,” said House GOP leader Vin Candelora (R-North Branford).

The new budget also includes a new 5 cent-per-month charge on cellphone bills to fund the Firefighter Cancer Relief Fund. Customers could opt out of the fee.

“This budget does raise taxes,” state Rep. Joe Polletta (R-Watertown) said. “It might have been fancied as a 'no tax increase' budget, but we know, based on the documents and the runs that we received this morning, that it raises a significant amount of taxes.”

The massive spending plan includes more money for municipal aid and local schools, especially for skyrocketing special education costs. There is also a cap on magnet school tuition.

But public colleges will have to dip into their reserves.

“If you ask about disappointment, there’s folks disappointed about UConn’s level of support,” Ritter said. “It’s down in Year One.”

The state outsources dozens of critical services to nonprofits, which will see modest increases.

“On behalf of thousands of people served by community-based nonprofits, the Alliance thanks the General Assembly and Governor for reaching budget agreement that includes a significant funding increase in the second year,” said Gian Carl Casa, president and CEO of Connecticut Community Nonprofit Alliance. “The budget is not everything we requested, but in the context of this year’s discussions about budget restrictions, we are grateful for their choice to support programs that will improve thousands of lives and even save some.”

HUSKY Medicaid providers will finally get some much-needed help too – $60 million in higher rates. But that's not nearly as much as they asked for.

Connecticut hasn't raised Medicaid reimbursement rates since 2007.

Democrats touted that the budget stays below Connecticut’s strict spending cap by $0.9 million in Fiscal Year 2026 and $75.2 million in Fiscal Year 2027.

But it uses several budget maneuvers to make that happen.

“It rises to the level of deception and promotion only second to P.T. Barnum,” said Candelora. “This budget eviscerates all of our fiscal guardrails.”

Lawmakers are loosening the state’s Volatility Cap (which prevents lawmakers from spending “volatile” tax revenues like stock market gains), to fund the universal preschool program. Around $200 million of the current budget surplus will get the endowment started.

Lamont recently declared a “fiscal emergency," allowing fellow Democrats to exceed this year’s spending cap by $284 million. He also agreed to pre-pay $200 million in teacher pensions.

Both moves freed up additional spending cap room in the new budget.

“Gimmicks. Tax hikes. Dead bills getting brought back to life. That sums up this budget,” said Connecticut Senate GOP leader Stephen Harding (R-Brookfield). “The once-‘sacrosanct’ state spending cap has been shredded.”

Republicans warned that the added spending is unsustainable and that more tax increases could come if a recession hits.

“We are not going to stand for more tax increases on the state of Connecticut to pay for this irresponsible budget,” Candelora said.

Budget negotiators abandoned a $450 middle-class child tax credit, as well as a proposed capital gains surcharge on taxpayers earning more than $1 million a year.

The budget dropped plans to purchase body scanners at state prisons to eliminate strip searches.

Also, HUSKY Medicaid will no be longer required to cover weight-loss drugs like Ozempic, whose costs have skyrocketed.

The sprawling budget also includes numerous nonspending items.

It includes a ban on “deep fake” porn generated by artificial intelligence. But other parts of a controversial AI bill were dropped after Lamont promised a veto.

The budget also locks in current health requirements for fluoride in water and food safety, in case the Trump administration loosens protections at the federal level.

Connecticut's “shield law” for abortion providers and gender-affirming procedures will expand to more groups, although a provision protecting telehealth providers was removed over fears of litigation.

“Texas should not be coming in and suing our doctors,” Ritter said.

The state will also create a new “Safe Harbor Fund” for patients traveling to Connecticut, but it will only include private donations – not taxpayer dollars.

The budget outlines a new policy for school library book challenges and requires districts to adhere to the state’s anti-discrimination law when making those decisions.

Vapes will now be taxed and regulated the same as traditional cigarettes, with those under 21 banned for purchasing vapes.

Most college towns will also have to establish early voting sites for students.

And finally, a new study will look at relocating the Bridgeport and New Haven correctional centers. A separate $2 million study will explore ways to reduce noise around Tweed New Haven Airport.

The budget package now heads to the state Senate, which must approve it by Wednesday night.

Lawmakers must also pass a bonding bill that lists state borrowing projects.

Legislative leaders acknowledged that they will probably have to revise the budget this fall, depending on how big federal cuts from Washington are.